The Reserve Bank of India (RBI), today imposed a penalty of Rs 1-lakh on Maharashtra based Madheshwari Urban Development Co-operative Bank following violations of its directives, the apex bank said in a press release issued here.
According to RBI, the co-operative bank''s total unsecured advances exceeded the permissible limit of 15% of its net demand and time liabilities (NDTL).
Besides, it had also sanctioned unsecured advances (salary loans) beyond the prescribed ceiling of Rs 1-lakh.
It had also granted unsecured advances to Vithalrao Shinde Sahkari Sakhar Karkhana Maryadit whose Chairman and Chairman of the bank was the same person, the apex bank said.
All these acts were in violation of RBI directives, the release said.
A show cause notice had been issued to the bank, in response to which the bank submitted a written reply.
"After considering the facts of the case and the bank''s reply in the matter, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of the penalty," the release said.
According to RBI, the co-operative bank''s total unsecured advances exceeded the permissible limit of 15% of its net demand and time liabilities (NDTL).
Besides, it had also sanctioned unsecured advances (salary loans) beyond the prescribed ceiling of Rs 1-lakh.
It had also granted unsecured advances to Vithalrao Shinde Sahkari Sakhar Karkhana Maryadit whose Chairman and Chairman of the bank was the same person, the apex bank said.
All these acts were in violation of RBI directives, the release said.
A show cause notice had been issued to the bank, in response to which the bank submitted a written reply.
"After considering the facts of the case and the bank''s reply in the matter, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of the penalty," the release said.
